UPM-Kymmene - Company Announcement

Employee negotiations concluded in Finland and the UK – UPM closes 675,000 tonnes of publication paper capacity

UPM-Kymmene Corporation   Stock exchange release      20 January 2015 at 9:30
EET 

Employee negotiations concluded in Finland and the UK - UPM closes 675,000
tonnes of publication paper capacity 

UPM permanently closes down paper machine 2 at UPM Kaukas and paper machine 5
at UPM Jämsänkoski in Finland, along with paper machine 1 at the UPM Shotton
mill in the UK. Production will be ceased by the end of March 2015 at the
latest. Employee consultation processes concerning the closing plans were
concluded in mid-January 2015. 

The employee consultation process concerning the planned closure of the paper
machine 3 at UPM Chapelle in France, also announced in November, is proceeding. 

The number of positions is reduced by 114 at the Kaukas mill in Lappeenranta,
by 138 at the Jämsä River Mills and by 121 at Shotton. The consultations
covered among others reasoning for personnel reductions, schedule and change
support for those made redundant. All of the mills will continue paper
production on the remaining paper machines. 

Along with the closures, UPM reduces its coated and uncoated magazine paper
capacity by approximately 460,000 tonnes and its newsprint capacity by 215,000
tonnes. 

As planned, the company also continues centralising its Supply Chain operations
in Paper ENA (Europe and North America) and transfers Supply Chain planning and
order fulfillment activities from Tampere in Finland and Altrincham in the UK
to Augsburg and Dörpen in Germany. Customer service continues in the current
locations. The change concerns 48 positions in Tampere Supply Chain Centre and
11 positions in Altrincham. The company supports Supply Chain employees
transferring to Germany. 

“These decisions are unfortunate for the personnel involved, and the past
months have been challenging for all of us. From the business point of view,
the measures taken are necessary to improve our operating rates and
profitability in the European paper business, which still suffers from
overcapacity. By reducing capacity we ensure the efficient use of our remaining
machines in Europe,” says Bernd Eikens, Executive Vice President, UPM Paper
ENA. 

The announced decisions are part of UPM's EUR 150 million profit improvement
target introduced in November 2014. The full profit improvement programme
includes variable and fixed cost savings in all UPM businesses and functions. 

***

For further information please contact:

Bernd Eikens, Executive Vice President, UPM Paper ENA, best availability from
11:00-12:30 CET and 14:30-15:30 CET, tel. +49 160 707 3940 

For local information, please contact:

Mills:

Antti Hermonen, Operations Director, UPM Kaukas paper mill, UPM Paper ENA, best
availability from 10:00-11:00 CET, tel. +358 4002 80839 

Markku Taavitsainen, General Manager, UPM Jämsä River Mills, UPM Paper ENA,
best availability from 10:00-11:00 CET, tel. +358 40 5039 924 
David Ingham, General Manager, UPM Shotton, UPM Paper ENA, best availability
from 10:30-11:30 and 14:00-15:00 CET, Tel. +44 1244 2844 07 


Supply Chain, Tampere and Altrincham:

Janne Ussa, Vice President, Supply Chain, UPM Paper ENA, best availability from
12:00-14:00 CET, Tel. +358 40 7274 587 

Previous press release:

UPM introduces a new profit improvement target of EUR 150 million - UPM Paper
ENA plans to reduce 800,000 tonnes of publication paper capacity in 2015 


Note to the editors

UPM Kaukas
UPM Kaukas paper mill manufactures coated magazine papers (LWC and MWC) with an
annual capacity of 560,000 tonnes. Located in South East Finland the mill
employs about 320 people. The paper mill is a part of the Kaukas mill integrate
which employs about 1,200 people. 


UPM Jämsä River Mills
UPM Jämsä River Mills manufacture uncoated magazine papers (SC), label and
packaging papers in the Jämsänkoski unit and coated magazine papers (LWC),
directory paper (MFS) and newsprint in the Kaipola unit with a combined annual
capacity of 1,600,000 tonnes. Located in Central Finland, the mills employ
about 1,000 people. 


UPM Shotton
UPM Shotton Paper manufactures standard newsprint with an annual capacity of
490,000 tonnes. Located in North Wales, United Kingdom, the mill employs about
370 people. 



UPM Paper ENA in brief
UPM Paper ENA (Europe & North America) is the world's leading producer of
graphic papers, serving customers in Magazine Publishing & Advertising,
Merchants, Home & Office, and Newspaper Publishing. A leader in sustainable and
high performance papers, UPM Paper ENA's production is located in Finland,
Germany, the United Kingdom, France, Austria, and the United States. With
headquarters in Germany, UPM Paper ENA employs approximately 10,000 people. To
learn more about UPM Paper ENA, visit: www.upmpaper.com 


UPM in brief
Through the renewing of the bio and forest industries, UPM is building a
sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM
Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood.
Our products are made of renewable raw materials and are recyclable. We serve
our customers worldwide. The group employs around 21,000 people and its annual
sales are approximately € 10 billion. UPM shares are listed on NASDAQ OMX
Helsinki. UPM - The Biofore Company - www.upm.com 


UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

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